The Blog

How Your Personality May Affect Your Finances

There are many things in life that can affect your finances. Everything from your career, to your family situation, to your future aspirations. These things can alter the way you budget, spend, save, and invest. You might be surprised to find, however, that your personality type can illuminate the reason you handle your money the way you do.

Take a look at these five personality types and their affect on finances. So, next time you spend, you’ll have a better idea as to the reason why.

1. Realists/Conservatives

If you’re someone who identifies as a realist/conservative personality, you’re probably going o be pretty cautious when it comes to money. You aren’t the type to go out and spend extravagantly and most likely err on the side of saving for that rainy day that is sure to come.

However, since you’re not a risk-taker, you also won’t likely take any risks when saving and investing, even if they could benefit you. Moreover, you may find yourself miserable saving all that money, instead of using it to get some fun out of life.

2. Adventurous/Bold

If you’re bold in life, you’re likely bold with your money as well. More often than not, this applies primarily to investing for you. You’re not afraid to take risks because you know they equal big rewards. You probably also focus on credit, since gaining more credit allows you to take possible risks in life. While some risk is a necessity, it’s important to remember to be careful as not all risks come with rewards.

3. Feelers

Feelers tend to be emotional spenders. You’re the overgenerous one, that friend who pays for dinner or is constantly showering people in gifts as a way to show your love and to gain acceptance.

Although giving to others is a lovely and kind way to use your money, you have to be careful as well. Unfortunately, you might also spend as a coping mechanism to make yourself feel better. Feelers run the risk of landing in steep debt since spending related to emotion can often times be erratic.

4. Analyzers

Analyzers are the big thinkers of the group. You have well-thought out and developed financial plans and strategies. You take the time to carefully think through every money move whether you’re making a purchase, looking to invest or deciding on the optimal saving plan.

While giving careful thought to financial decisions is a good thing, it could also lead you to hold back in times when you should move forward for fear of making a wrong decision, or prolong a needed purchase for far too long.

Whatever your personality type, the way you live life and make decisions is bound to affect your finances. Each personality type has its strengths and weakness that can all positively or negatively affect your financial portfolio. The trick is to figure out your personality type and be conscious of how it influences your money habits.

Have you noticed if your personality type affects your spending habits? What have you done to combat any financial errors that might cause?